Intelligent Supply Chains

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One of the things that excited me about attending IBM’s Think 2020 event is listening to real-world solutions to problems that we are currently all dealing with. For example, we are currently in the midst of the global Covid-19 pandemic (Learn more about what IBM is doing during COVID-19). Global supply chains have been severely disrupted, resulting in shortages of all kinds, ranging from personal protective equipment, to — dare I say — toilet paper! Because of this, “supply chain” has now become a household term, referring to the reason why the corner grocery store ran out of eggs, or why hand sanitizer suddenly quadrupled in price.

A supply chain is like an iceberg, with most of the action taking place behind the scenes. In his presentation titled “Delivering on Customer Needs Through Smarter Fulfillment”, Sudhir Balebail, Program Director — Offering Management, Order Management Applications — IBM Sterling, IBM, stated, “As consumers of products and services, we usually see only that last leg of the supply chain, maybe when we’re in a store or in an e-commerce website. But we all know that behind this, there is a complex ecosystem of suppliers and partners whose networks are interconnected.”

The onset of digitalization brought forth a paradigm shift in the services industry: the personalization of the customer experience. The basic premise is that to continue serving customers in the 21st century, businesses must meet the customers’ needs where, when, and how the customers want them fulfilled. As Sudhir so very eloquently stated, “We live in the age of the consumer, and here, customer experience takes center stage and differentiates the winners.” Businesses need to break down their legacy silos to compete in this day and age. Sudhir mentioned that a common silo that exists in businesses is B2B versus B2C. While the operating models for these two segments are different, businesses can optimize their operations to encompass both of them.

Besides breaking down, or at least thinning down, the silos, suppliers need to fulfill their customers' needs via the channels of the customer’s choosing. For example, providing customers with ordering tracking capabilities via their company’s website or mobile applications, allowing order entry via shop floor kiosks, enabling automatic restocking of perishables via AI-enabled smart refrigerators, or providing customer support via social media networks. We have seen a similar transformation that took place in telecom when contact centers started leveraging multiple channels to serve their customers. Suddenly, instead of customers waiting on endless hold just to speak with an agent, customers were able to get their needs addressed via a mode of their choosing, in a timeframe that was acceptable to them. This resulted in greater customer satisfaction, which in turn resulted in greater customer retention and an increase in repeat business. In addition, the company saved money by not having to hire additional agents, and they also experienced a significant reduction in telephone toll charges and telecommunication equipment maintenance.

The same methodology holds true for the supply chain. In an era where the consumer is king and customer experience takes center stage, manufacturers and suppliers can no longer come to the table with excuses as to why they didn’t deliver. They must be able to deliver on their promises, despite disruptions, and engage with their customers on their terms. This is where having a solid IT infrastructure comes into play.

In the session titled “Steadfast Resiliency in a Time of Global Disruption”, Joe Cropper, Chief Architect, Power Systems Hybrid Multicloud Platform, IBM, interviews Lauren Nelson, Principal Analyst, Forrester Research, Inc., (Link) on how companies can use this unprecedented challenge to strengthen their IT infrastructure strategy for whatever challenge comes next.

One of the challenges Lauren discusses is how some organizations are thriving during this global pandemic, and experiencing significant growth, but behind the scenes, it is very difficult to execute on that growth, because their supply chain is disrupted. Other businesses are struggling to survive. Ultimately, the question about tech spend comes up. The logical choice for businesses might be to cut back on spending because we are in a downturn right now, and during downturns, businesses cut their hardware and technology spending.

An interesting point that Lauren mentions is how this spending cut needs to be nuanced. Even for businesses that are struggling to survive, there might be some spending that is more discretionary than others, but businesses need to be strategic about this and not cut out all their spending. They need to think about the long-term effect of their decisions, and if cutting back today might prevent them from serving their customers the way they need to and might hurt their reputation down the road.

Related to that, there is another reason why simply delaying required technology refreshes is not a good idea. Earlier this year, IBM Systems commissioned Forrester Consulting to conduct an enterprise hybrid multi-cloud study (ibm.biz/Avrohom-HMC-Study), and one of the key findings is that companies that delay IT Infrastructure upgrades are opening themselves up to serious vulnerabilities. Hacks and ransomware attacks are on the rise and delaying your technology refresh can put your entire business at risk.

According to Misha Rangel, Senior Product Marketing Manager for IBM Systems in a recent interview on #AskTheCEO (Link) it’s not just software that needs to be refreshed. “Hardware has a security component, as well. So, many times, if from a hardware perspective, your data is secure, at that core level, then you’re reducing risk at the software, or at that peripheral level as well.

In conclusion, we’re living in an era when businesses need to deliver on their commitments, no matter what challenges come their way because a lack of fulfillment on their part can have cascading ramifications for everyone down the line. One of the ways to ensure that your business can support the latest critical applications as well as reduce the risks of downtime due to cyberattacks is to ensure that your IT infrastructure is refreshed and maintained on a regular basis.

About the Author


Avrohom Gottheil is the founder of #AskTheCEO Media, where he helps global brands get heard over the noise on social media, by presenting their corporate message using language people understand.

Avrohom presents his clients as Thought Leaders, which challenges his audience to reimagine their own mission and vision, delivering actionable insights, and leaving them passionate, motivated, and with the necessary tools to take immediate action.

Avrohom comes from a 20+ year career in IT and Telecom, where he helped businesses around the world install and maintain their communication systems and contact centers. He is a Top-ranked global expert in IoT, AI, Cloud, and Cybersecurity, followed worldwide on Twitter, and a frequent speaker on leveraging technology to accelerate revenue growth.

Listen to him share the latest technology trends, tools, and best practices for IoT, AI, Cloud, Cybersecurity, and more, on the #AskTheCEO podcast — voted as the #1 Channel Friendly Podcast 2019 by Forrester.

Contact Avrohom:

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Neil Cattermull

Director of Operations

4 年

Using AI together with a platform such as the IBM Sterling suite can dynamically provide automated supply chains for distribution. What is needed pre and post pandemic is a system that adapts through suppliers and distribution the levels of fulfilment. This is often overlooked but a necessity. Well Done Avi for posting this update on #Think2020

Tamara McCleary

Academic research focus: science, technology, ethics & public purpose. CEO Thulium, Advisor and Crew Member of Proudly Human Off-World Projects. Host of @SAP podcast Tech Unknown & Better Together Customer Conversations.

4 年

Fantastic article, Avrohom!

Janet Schijns

Go To Market and Profitable Growth Expert * Board Member * Audit Committee * CEO* Ecosystem Growth Expert* Megacosm Guru * Executive Leadership and Governance * Security * Mobility *Edge Compute *Collaboration

4 年

Great share

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